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Enlarge ImageRequest to buy this photoFILE PHOTOCarnival Corp., beset by a string of high-profile cruise-ship problems dating back to a sinking in January 2012, reported that it earned a profit in its first quarter, but its forecast of flat revenue in this fiscal year disappointed analysts.

Saturday March 16, 2013 5:14 AM

MIAMI — The world’s largest cruise line has suffered through a number of high-profile problems.
Yet passengers continue to book vacations, thanks to discounts — albeit at a slower pace.

Carnival Corp. offered more sales to attract wary passengers after an engine fire last month
crippled the Carnival Triumph, leaving 4,200 people stranded for five days without working toilets
or power. In the past week, three more of its ships had mechanical problems, ruining vacations for
thousands.

Carnival Corp. said yesterday that it earned $37 million, or 5 cents per share, in its fiscal
first quarter, which ended on Feb. 28. That compares with a loss of $139 million, or 18 cents per
share, a year earlier.

But Carnival’s forecast for its fiscal year was below analysts’ predictions, and its shares
closed at $34.95, down 2.2 percent. On Thursday, the company ended the voyage of the Carnival Dream
after the ship’s backup emergency diesel generator failed, causing problems with elevators and
toilets.

Instead of the ship making its return trip to Florida, Carnival was forced to charter airplanes
to fly home the 4,300 passengers. The Dream’s next trip, which was supposed to start on Sunday, was
canceled. All the passengers scheduled for that voyage will receive a refund for the cruise and
airfare.

The company also said that another ship — the Legend — was having mechanical problems and will
skip its stop at the Cayman Islands, heading straight to its final port in Tampa, Fla. instead.
Also because of mechanical problems, a tugboat had to tow the Elation back to New Orleans soon
after it had left last Saturday. Carnival runs cruises under 10 brands, including Holland America,
Princess, Cunard and its namesake line.

Vacationers have been wary about booking cruises since the Costa Concordia — also owned by
Carnival — sank off the coast of Italy in January 2012. Passengers have returned to the seas, but
many needed to be coaxed by deep discounts.

Asked if they would like to divulge how deep the discounts have been, Carnival executives
replied: “Not particularly.”

The Miami-based company said bookings for 2013 are behind the level at the same point of 2012.
The company blamed Europe’s economic problems for its inability to raise prices. North American
prices are up slightly, but those in Europe and Asia lag behind.

Carnival expects 2013 revenue to be flat, compared with a previous forecast of growth of 1 to 2
percent.